model of collateralized lending in which: (1) borrowers endogenously determine collateral quality, and (2) lenders can … produce costly information about collateral. In equilibrium, lenders do not produce information and borrowers in wealthier … economies optimally use lower quality collateral. Crises are triggered by unexpected shocks to collateral quality. Wealthier …

to smooth consumption over time and because they provide collateral and liquidity services. We characterize a recursive … and contemporaneous costs due to lost collateral and liquidity are essential to generate these empirically plausible …

-term safe assets are money or money-like. A long-term safe asset can store value over time or be used as collateral. Human …

-term safe assets are money or money-like. A long-term safe asset can store value over time or be used as collateral. Much of …